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Econometrics in Sustainable Financial Markets

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 August 2021) | Viewed by 3065

Special Issue Editor


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Guest Editor
Department of Economics, Lancaster University Management School, Lancaster LA1 4YX, UK
Interests: Econometrics, Applied econometrics, Bayesian techniques in time series and panel data, Efficiency and productivity and Banking models.
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Special Issue Information

Dear Colleagues,

The recent literature has focused a lot of attention into the notion of sustainable financial markets. One aspect of sustainable financial markets is predictability and a stable environment where financial decision-making results in sustainable operations. An equally important aspect is that investors should be well informed when making their decisions but they should also take into consideration other aspects than the purely financial one. Such aspects involve materially relevant environmental, social and governance factors. Sustainable investments are attracting increasing attention but at the same time the market seems to remain unaffected. However, business practices also seem to conform more and more to ecological considerations, inter-generational and intra-generational distributional issues, and related problems.

The purpose of the Special Issue is to consider different methodological and empirical approaches to the problem of sustainable financial markets. A central issue is how sustainability can be defined and tested and what does it mean in the context of financial markets. What does it mean to be involved in socially responsible investing? What does it mean to improve transparency and information in financial markets including banking, mutual funds, and related areas? What is the role of monetary policy, interest rates and instability in financial markets, including the possibility of bubbles and / or Ponzi schemes?

Prof. Mike Tsionas
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • sustainable financial markets
  • information transparency
  • stability

Published Papers (1 paper)

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Research

16 pages, 827 KiB  
Article
Creditworthiness Assessment for Credit Institutions and for the Risk Associated with Excessive Leverage toward Sustainable Performance
by Razvan Sorin Șerbu, Laurentiu Paul Baranga and Ovidiu Gheorghe Petru
Sustainability 2021, 13(21), 11574; https://0-doi-org.brum.beds.ac.uk/10.3390/su132111574 - 20 Oct 2021
Cited by 1 | Viewed by 2092
Abstract
With the development of financial transactions, it has become necessary for parties to assess the creditworthiness of their counterparty before entering into an agreement. In this respect, z-scoring methods for assessing creditworthiness have been developed, credit risks have been regulated, and rating providers [...] Read more.
With the development of financial transactions, it has become necessary for parties to assess the creditworthiness of their counterparty before entering into an agreement. In this respect, z-scoring methods for assessing creditworthiness have been developed, credit risks have been regulated, and rating providers have emerged to ensure a certain level of independence. This article introduces a z-scoring methodology, developed using principal component analysis, for assessing the creditworthiness of credit institutions; a methodology for determining the rating corresponding to the scoring obtained by the entities, developed through expert judgement; and an analysis of the existence of a significant correlation between z-scoring and the level of the leverage and capital adequacy ratios. Furthermore, considering that excessive leverage can have a negative impact on the creditworthiness of an entity, a methodology for assessing the leverage ratio is presented, along with a method for determining any additional own fund requirements where this ratio is above the regulated maximum level. The results obtained by applying the described methodologies to the data of the entities showed stable character. All these methodologies can be implemented by credit institutions to achieve better creditworthiness and business sustainability. Full article
(This article belongs to the Special Issue Econometrics in Sustainable Financial Markets)
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